An  article  in newspaper "Bizness&Baltija" (May 21, 2004) contained an

information that the building owned by JSC "Rīgas Sporta pils", located

at  75 Kr.Barona Street, Riga, and the surrounding area in the block is

expected to go under reconstruction. The fact was released to the media

by  Jānis  Naglis,  Chairman  of  Supervisory  Board. Hereby JSC "Rīgas

Sporta pils" offers the following comments:



1.      There has not been any resolution neither by Supervisory Board,

nor Management Board regarding the reconstruction;



2.       Jānis  Naglis has publicized his speculations about the future

of Rīgas Sporta pils as a shareholder;



3.       Since  the  building  of  Rīgas  Sporta  pils,  in its present

technical  condition, does not have any future, JSC "Rīgas Sporta pils"

Management  Board  has  applied  to  building  supervision  authorities

requesting  permission  for  reconstruction  in the entire block; up to

now, no final answer has been received.